A fraudulent transaction in which financial speculators use life insurance to wager on human life exposes America’s senior citizens to potential tax and legal liability and threatens the integrity of the life insurance marketplace, James J. Avery, president of individual life insurance with Prudential Financial, told a congressional panel today.
Testifying on behalf of the American Council of Life Insurers (ACLI) at a Senate Special Committee on Aging hearing entitled “Betting on Death in the Life Settlement Market—What’s at Stake for Seniors,” Avery urged the committee to take a strong stand that this transaction, called stranger-originated life insurance (STOLI), must be stopped.
